Southwest Airlines is facing possible fines from the U.S. Transportation Department (DOT) for its December operational meltdown.
DOT, which had launched an investigation into the matter, has determined that the airline “failed to provide adequate customer service assistance, prompt flight status notifications, and proper and prompt refunds,” Southwest reveals in an Oct. 30 regulatory filing. Notice from the DOT came on Oct. 27, and states that “the assessment of a civil penalty is warranted,” Southwest says.
Landing right in the middle of the peak holiday travel period, the incident began on Dec. 21 and ended on Dec. 29, resulting in more than 16,700 cancellations as the effects of winter storm Elliott led to cascading, close-in flight cancellations that overwhelmed the airline’s processes. What began as a weather-related event snowballed into a multi-day disruption, while the carrier worked to realign flight crews, flight schedules, and aircraft.
The company’s resulting action plan—complementary to an existing operations modernization plan—focused on three areas: upgrading airport infrastructure, equipment and preparedness; enhancing cross-team collaboration; and accelerating investments in technology and tools for irregular operations. It has since expressed confidence in its enhanced operational resilience for the season ahead.
“I feel very, very prepared for this winter,” President and CEO Bob Jordan said during a September investor conference. “I have a lot of confidence that we’re going to operate well this winter.”
In its Oct. 30 filing Southwest notes that it might also face costs from litigation initiated by customers and/or shareholders, and that in addition to DOT penalties it “is currently not able to estimate a range of possible loss for such items.”
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